logo
Earnings Tweak for Tariffs Draws Scrutiny to Urbaser's Debt Sale

Earnings Tweak for Tariffs Draws Scrutiny to Urbaser's Debt Sale

Bloomberg18-06-2025
Spanish waste management company Urbaser SA has removed a clause from deal documents that would have allowed it to exclude the impact of the US trade war from its earnings, according to people familiar with its debt sale.
Urbaser, which is owned by private equity firm Platinum Equity, is seeking to raise €2.3 billion ($2.7 billion) in fresh debt from investors. An offering memorandum seen by Bloomberg included a provision that would have allowed it to tweak Ebitda, or earnings before interest, tax, depreciation and amortization, to exclude the impact of tariffs.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Franklin Covey Co (FC) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Franklin Covey Co (FC) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Yahoo

time7 hours ago

  • Yahoo

Franklin Covey Co (FC) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Revenue: $67.1 million for the third quarter, down 9% from the prior year. Adjusted EBITDA: $7.3 million, exceeding the top end of the guidance range of $4 million to $6.5 million. Gross Margin: Approximately flat year over year at 76.5% of revenue. Operating Expenses: $53.5 million, increased by $5.7 million compared to the prior year. Restructuring Charges: $4 million increase in restructuring charges. SG&A Expenses: Increased by $1.6 million due to go-to-market acceleration initiative. Cash Flow from Operating Activities: $19 million year-to-date, down from $38.4 million last year. Free Cash Flow: $10.6 million year-to-date, compared to $30.6 million last year. Enterprise Division Revenue: $47.3 million, down from $51.9 million in the prior year. Education Division Revenue: $18.6 million, down 8% from the prior year. Education Subscription Revenue: Increased 13% in the third quarter to $11.8 million. Deferred Subscription Revenue: Increased 7% to $89.3 million. Share Repurchase: Approximately 372,000 shares purchased in the third quarter at a cost of $8.3 million. Fiscal 2025 Revenue Guidance: Revised to $265 million to $275 million. Fiscal 2025 Adjusted EBITDA Guidance: Widened to $28 million to $33 million. Release Date: July 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Franklin Covey Co (NYSE:FC) reported third-quarter revenue of $67.1 million, in line with expectations, and adjusted EBITDA of $7.3 million, exceeding the top end of the expected range. The company successfully implemented cost reductions, which are expected to result in meaningful year-over-year increases in adjusted EBITDA next year. Franklin Covey Co (NYSE:FC) achieved strong traction in its go-to-market transformation in the Enterprise North America business, with an increase in new client wins and revenue per win. The Education business continues to be strong, with subscription revenue growing 13% and deferred revenue increasing 21% in the third quarter. The company reported a high attachment rate of strategically important subscription services, with a 60% attach rate in the Enterprise division. Revenue was down 9% from the prior year quarter, primarily due to the impact of government actions and macroeconomic uncertainty. Operating expenses increased by $5.7 million compared to the prior year, driven by restructuring charges and increased SG&A expenses. The company revised its fiscal 2025 revenue guidance to a range of $265 million to $275 million, reflecting continued uncertainty impacting client decision-making. Subscription revenue invoiced was down 8% year-over-year, attributed to government contract cancellations and economic uncertainty. The company experienced some client downsizing in subscription sizes, impacting overall subscription growth. Q: Can you provide more details on the improvements in the Enterprise division despite challenges related to government actions and uncertainty? A: Paul Walker, CEO, highlighted that new logos are up and expansion within existing clients is ongoing. The sales force transition is showing positive results, with increased pipeline growth and a high services attach rate. The company is also seeing more services attached to new logo wins, indicating strong traction in their sales model. Q: How is the Education division performing amid uncertainties like the Department of Education funding and ESSER funds sunsetting? A: Paul Walker, CEO, expressed confidence in the Education division, expecting to match or exceed the 728 new schools added in fiscal 2024. Despite uncertainties, the division is growing due to the strong demand for the Leader in Me program and successful navigation of the current environment. Q: What factors contributed to the recent revision in revenue guidance? A: Paul Walker, CEO, explained that the revision is primarily due to the timing of service deliveries and decision-making delays in both the Education and Enterprise divisions. While the direct impact from government contracts has stabilized, the uncertainty in the macroeconomic environment continues to affect client decision timelines. Q: How is Franklin Covey leveraging AI in its service delivery? A: Paul Walker, CEO, mentioned the use of an AI sales coach as part of their sales performance solution, which provides real-time coaching tailored to clients' unique circumstances. AI is also being used for content customization and personalization, enhancing the value and efficiency of their offerings. Q: Can you elaborate on the cost reduction actions taken and their impact on EBITDA guidance? A: Jessica Betjemann, CFO, stated that the company implemented cost reductions resulting in $3 million savings in Q3 and an expected $4 million in Q4. These actions have allowed Franklin Covey to maintain its EBITDA guidance range despite the revenue decline, with an annualized savings of $8 million anticipated for fiscal 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Franklin Covey Co (FC) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Franklin Covey Co (FC) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Yahoo

time7 hours ago

  • Yahoo

Franklin Covey Co (FC) Q3 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Revenue: $67.1 million for the third quarter, down 9% from the prior year. Adjusted EBITDA: $7.3 million, exceeding the top end of the guidance range of $4 million to $6.5 million. Gross Margin: Approximately flat year over year at 76.5% of revenue. Operating Expenses: $53.5 million, increased by $5.7 million compared to the prior year. Restructuring Charges: $4 million increase in restructuring charges. SG&A Expenses: Increased by $1.6 million due to go-to-market acceleration initiative. Cash Flow from Operating Activities: $19 million year-to-date, down from $38.4 million last year. Free Cash Flow: $10.6 million year-to-date, compared to $30.6 million last year. Enterprise Division Revenue: $47.3 million, down from $51.9 million in the prior year. Education Division Revenue: $18.6 million, down 8% from the prior year. Education Subscription Revenue: Increased 13% in the third quarter to $11.8 million. Deferred Subscription Revenue: Increased 7% to $89.3 million. Share Repurchase: Approximately 372,000 shares purchased in the third quarter at a cost of $8.3 million. Fiscal 2025 Revenue Guidance: Revised to $265 million to $275 million. Fiscal 2025 Adjusted EBITDA Guidance: Widened to $28 million to $33 million. Release Date: July 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Franklin Covey Co (NYSE:FC) reported third-quarter revenue of $67.1 million, in line with expectations, and adjusted EBITDA of $7.3 million, exceeding the top end of the expected range. The company successfully implemented cost reductions, which are expected to result in meaningful year-over-year increases in adjusted EBITDA next year. Franklin Covey Co (NYSE:FC) achieved strong traction in its go-to-market transformation in the Enterprise North America business, with an increase in new client wins and revenue per win. The Education business continues to be strong, with subscription revenue growing 13% and deferred revenue increasing 21% in the third quarter. The company reported a high attachment rate of strategically important subscription services, with a 60% attach rate in the Enterprise division. Revenue was down 9% from the prior year quarter, primarily due to the impact of government actions and macroeconomic uncertainty. Operating expenses increased by $5.7 million compared to the prior year, driven by restructuring charges and increased SG&A expenses. The company revised its fiscal 2025 revenue guidance to a range of $265 million to $275 million, reflecting continued uncertainty impacting client decision-making. Subscription revenue invoiced was down 8% year-over-year, attributed to government contract cancellations and economic uncertainty. The company experienced some client downsizing in subscription sizes, impacting overall subscription growth. Q: Can you provide more details on the improvements in the Enterprise division despite challenges related to government actions and uncertainty? A: Paul Walker, CEO, highlighted that new logos are up and expansion within existing clients is ongoing. The sales force transition is showing positive results, with increased pipeline growth and a high services attach rate. The company is also seeing more services attached to new logo wins, indicating strong traction in their sales model. Q: How is the Education division performing amid uncertainties like the Department of Education funding and ESSER funds sunsetting? A: Paul Walker, CEO, expressed confidence in the Education division, expecting to match or exceed the 728 new schools added in fiscal 2024. Despite uncertainties, the division is growing due to the strong demand for the Leader in Me program and successful navigation of the current environment. Q: What factors contributed to the recent revision in revenue guidance? A: Paul Walker, CEO, explained that the revision is primarily due to the timing of service deliveries and decision-making delays in both the Education and Enterprise divisions. While the direct impact from government contracts has stabilized, the uncertainty in the macroeconomic environment continues to affect client decision timelines. Q: How is Franklin Covey leveraging AI in its service delivery? A: Paul Walker, CEO, mentioned the use of an AI sales coach as part of their sales performance solution, which provides real-time coaching tailored to clients' unique circumstances. AI is also being used for content customization and personalization, enhancing the value and efficiency of their offerings. Q: Can you elaborate on the cost reduction actions taken and their impact on EBITDA guidance? A: Jessica Betjemann, CFO, stated that the company implemented cost reductions resulting in $3 million savings in Q3 and an expected $4 million in Q4. These actions have allowed Franklin Covey to maintain its EBITDA guidance range despite the revenue decline, with an annualized savings of $8 million anticipated for fiscal 2026. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data

Snap Rallies (SNAP) 7.6% as Analyst Raises Price Target
Snap Rallies (SNAP) 7.6% as Analyst Raises Price Target

Yahoo

time14 hours ago

  • Yahoo

Snap Rallies (SNAP) 7.6% as Analyst Raises Price Target

Snap Inc. (NYSE:SNAP) is one of . Snap Inc., operator of Snapchat, jumped by 7.59 percent on Tuesday to close at $9.35 apiece as investors scooped up shares following a higher price target from an investment firm. In its market note on Tuesday, Wells Fargo raised its price target for the company to $11 from $8 previously, while maintaining an 'equal weight' rating on its stock. The price target marked a 17.6 percent upside from its latest closing price. The adjustment reflected Snap Inc.'s (NYSE:SNAP) revenue growth forecast for the quarter, having raised it to 13 percent from 6 percent previously. A young adult family using a Camera to record moments of their daily life. Wells Fargo, for its part, expects Snap Inc. (NYSE:SNAP) to register $165 million in subscription revenues for the second quarter of the year, with direct response advertising growing 13 percent year-on-year. Additionally, it targets Snap Inc. (NYSE:SNAP) to deliver $76 million in EBITDA, and third-quarter revenue guidance of $1.54 billion to $1.58 billion, or a 12-15 percent year-on-year growth. While we acknowledge the potential of SNAP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store